Strategic Marketing Exam 1 Review

The best example of a firm's external stakeholder is a(n)

government agency that regulates the prices of products manufactured by the firm.

A firm is said to gain a competitive advantage when it accomplishes which of the following?

provides products similar to its competitors, but at lower prices

Scanning the general environment would identify information on

the aging population and ethnic shifts.

Which of the following scenarios illustrates a firm that has a sustainable competitive advantage?

Bill and Ted Corp. was able to hold its market share of 68 percent in the social networking industry for more than three years.

The ________ effect involves studying and copying the competition, which results in unsuccessful efforts to gain a competitive advantage.

Red Queen

In assessing its primary activities, an airline would examine

baggage handling.

The bargaining power of suppliers is enhanced under which following market condition?

dominance by a few suppliers

Underperformance relative to other firms in the same industry or the industry average results in a(n) ________ for a firm.

competitive disadvantage

All of the following are external stakeholders except which of the following?

competitors

Environmental analysis requires continual questioning of all these assumptions except

continual updating of environmental knowledge.

Most consumers and investors today want the firms they do business with to look beyond just the profit motive. In fact, they want firms that behave legally and ethically while also giving back to their communities via philanthropic activities. The framework that attempts to reconcile these wants is known as...

corporate social responsibility.

The goal of a good strategy is focused primarily on

creating superior value while containing costs.

Regarding the value-chain concept, the most important stakeholder interrelationship is between ________ and the organization.

customers

Perceptual acuity requires the ability to ________ early warning signals of ________ changes

detect; environmental

This is an input process for forecast development

environmental monitoring.

A successful strategy details a set of goal-directed actions that managers make to gain and sustain a competitive advantage; in order to create this strategy, managers must focus on three pillars. Which of the following below is not one of these pillars?

execution

In the resource-based view of the firm, examples of tangible resources include

financial resources, physical resources, and technological resources.

Which of the following terms describes the guiding policy to address the competitive challenge, and uses corporate- and business-level strategy?

formulation

In strategic management, strategists engage in three pillars. These three pillars include the ________of major goals and objectives.

implementation

According to value-chain analysis, ________ would be considered part of the general administration in a firm.

information systems

Financial ratio analysis involves identifying how a firm is performing according to all but which of the following?

innovation

In general, the threat of substitutes is heightened because the Internet

introduces new ways to accomplish the same task.

The threat of new entrants is high when there are

low economies of scale.

In the general environment, which of the following is not a demographic trend?

more women in the workforce

A resource is valuable and rare but neither difficult to imitate nor without substitutes. This should enable the firm to attain

only a temporary competitive advantage.

In the SWOT framework, ________ are the same for all firms in the same competitive environment.

opportunities and threats

Using ________ to build sustainable advantage, Ashley Furniture controls all steps of its distribution systems, developing specific competencies that are difficult to match.

path dependency

A competitive advantage based on inimitability can be sustained for at least some time, if it has the following characteristics:

physical uniqueness, path dependency, causal ambiguity, and social complexity.

Complements are products or services that have a ________ impact on the ________of the products or services of that company.

potential; value

Which of the following three important stakeholder attributes should managers pay special close attention to in order to better understand stakeholder impact analysis?

power, legitimacy, and urgency

In comparing your firm with all other firms in your industry you assess the ________ performance.

relative

As the legal owners, ________ have the most legitimate claim on a company's profits

shareholders

Strategic groups consist of firms that are more ________ to each other than firms that are not.

similar

If a company wants to gain a competitive advantage in a highly competitive industry, it should ideally

stake out a unique position within the industry.

To better achieve a competitive advantage, firms must now adopt a holistic approach towards satisfying multiple stakeholders opposed to focusing on the needs of their shareholders. What term is used for this approach?

stakeholder strategy

Sean, a retired CEO, invests capital in a start-up company that creates budgeting software. He mentors the entrepreneur and the employees of the company because he wants the company to perform well and survive in the market. Thus, Sean is the start-up company's

stakeholder.

According to AFI strategy framework, in which of the following tasks of strategic management does a firm identify the roles strategic leaders play?

strategy analysis

In ________, a firm frames a guiding policy to address the competitive challenge.

strategy formulation

Which of the following stages in the AFI strategy framework involves designing a business, corporate, and global strategy?

strategy formulation

SWOT analysis is a framework for analyzing the internal and external environment of a company. It consists of strengths, weaknesses, opportunities, and threats. According to a SWOT analysis, a company should ________ the ________ presented by the environment.

take advantage of; opportunities

The three key types of resources that are central to the resource-based view of the firm are

tangible resources, intangible resources, and organizational capabilities.

The bargaining power of the buyer is greater than that of the supplier when

the buyer profit margin is low.

The resource-based view (RBV) of the firm combines the following two perspectives:

the internal analysis of the firm and the external analysis of the industry and competitive environment.

For a firm that operates in an industry where competition is high, which of the following practices will result in inferior performance?

trying to be everything to everybody by combining different competitive strategies

Intangible resources are typically embedded in ________ routines and practices that have evolved and accumulated over time.

unique

Inbound logistics include which of the following?

warehousing and inventory control